Wednesday, November 15, 2006

The Housing Downturn Hits Home Depot Stock

"The real estate sector's hard times have filtered through to the large-scale retailers who supply the basic building ingredients. Retailer Home Depot (NYSE: HD) reported weak results for the third quarter on Nov.14 ... on cooler activity in the sector.

HD is also predicting a chilly fourth quarter, with per-share profits falling 12% to 16% from a year ago. "I still think we have deeper to go than we have seen," CEO Bob Nardelli said on a conference call with analysts. "I do not think we have seen bottom yet. I do not see anything that says it's going to get significantly better in '07. "

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